Pressure mounts on Transport Minister

The NSW government is close to announcing its compensation package for companies left stranded by the axed CBD metro project, a move that will add to the pressure on Transport Minister
David Campbell
, already under attack for his role in the F3 ­debacle earlier this week.

Mr Campbell refused to resign yesterday amid calls for his head following the bungled management of a 10-hour traffic jam on the Sydney to Newcastle freeway on Monday.

The government opted instead to punish Roads and Traffic Authority chief Michael Bushby, who was stood aside pending an investigation.

However, Mr Campbell’s bad run is set to continue as the government makes a final decision on whether to pay $200 million to the companies that successfully bid to build and operate the $5 billion metro from Rozelle to the city.

The government promised to swiftly reimburse their costs after ­announcing its decision to dump the project in February.

An independent audit of the ­compensation claims prepared by Deloitte will be handed to the government this week and cabinet will then decide on the level of compensation.

If it agrees to pay the costs in full, the bill for the metro project will climb to half a billion dollars. If it doesn’t, it risks damaging its already strained ­relationship with the private sector.

A spokesman for Mr Campbell said the government was waiting for the ­independent report before making a decision on payouts.

Related Quotes

Company Profile

Meanwhile, Mr Campbell said yesterday that Ann King had been appointed acting chief of the RTA to replace Mr Bushby, who would remain on full pay.

Former NSW police commissioner Ken Moroney will lead the investigation into why hundreds of motorists were left waiting up to 10 hours on the F3 following a truck crash.

The accident happened about 11.40am but a “contra-flow" system to divert traffic wasn’t requested until 6.30pm and was only put in place three hours after that.

“It’s a minister’s responsibility to hold the department to account and that’s what I’m doing," Mr Campbell said. “There is absolutely nothing in the process that the RTA followed on Monday that requires the minister’s approval for the contra-flow to be put in place. I was not asked for my approval and it is not appropriate for the minister to take those road safety ­operational decisions."

He said a 12-page report prepared by Mr Bushby and handed to the ­government on Tuesday was “inadequate" and he had no plans to resign over the matter.

“I’m very confident in enjoying the Premier’s confidence and I intend to get on with the job," he said.

But Opposition Leader Barry O’Farrell said “the inquiry into this stuff-up should not be carried out by the Keneally government or the Premier’s Department, but by someone truly independent."

“It must cover the actions – or lack of actions – by all involved, including Mr Campbell and his political staff."

Mr Campbell would not comment on the terms of reference for the inquiry but said he welcomed ­scrutiny.

This is not the first time an RTA boss has lost their job under this government. In 2005, under roads minister Joe Tripodi, Paul Forward lost his job amid the controversy surrounding the contracts with private operators of the Cross City Tunnel.

Premier Kristina Keneally said Mr Campbell had acted appropriately in the F3 incident.